ITIN vs EIN for Foreign Founders: Which Number You Need

Understand the critical difference between ITIN and EIN for non-US founders forming a US LLC. Learn which to apply for first and avoid months of delays.

By Omer Aydin · 2026-08-19

The confusion between ITIN and EIN for foreign founders costs international entrepreneurs months of delays and, in some cases, forces them to restart applications from scratch. These are two completely different numbers issued by two different IRS divisions for two different purposes, yet non-US founders routinely apply for the wrong one first, or assume they need both when they may only need one. If you are forming a US LLC or C-Corp from outside the United States, understanding which number does what (and in which order to obtain them) is the first operational decision that determines your timeline.

The fundamental difference

	EIN (Employer Identification Number)	ITIN (Individual Taxpayer Identification Number)
What it identifies	Your business entity	You personally
Who issues it	IRS (Cincinnati, OH)	IRS (Austin, TX — ITIN Unit)
Who needs it	Every LLC/Corp that has employees, files tax returns, or opens a bank account	Non-US individuals who have US tax filing obligations but cannot get an SSN
Application form	Form SS-4	Form W-7
Timeline	Same-day (phone), 4 days (fax), 4 to 6 weeks (mail)	7 to 11 weeks
Required to form an LLC?	Yes	No (not for formation itself)
Required to open a bank account?	Yes (for the business)	Sometimes (for the individual)

Do foreign founders need both an ITIN and an EIN for their US LLC?

Most foreign founders need an EIN for their LLC but do not necessarily need an ITIN. An ITIN becomes required only when the individual has a personal US tax filing obligation, such as receiving US-source income that requires a personal return, or when a bank requires personal taxpayer identification beyond the business EIN.

• If your LLC is taxed as a disregarded entity (single-member) and earns US-source income, you personally must file a US tax return, which requires an ITIN
• If your LLC is taxed as a partnership (multi-member) and you receive distributive shares of US-source income, you need an ITIN for your personal K-1 reporting
• If your LLC earns no US-source income and you have no other US tax obligations, an ITIN is not required

The correct order of operations

For most international founders, the sequence is:

1. Form the LLC → 2. Get the EIN → 3. Open a bank account → 4. Get an ITIN (only if needed for personal tax filing)

The critical insight: you do not need an ITIN to get an EIN. The IRS Form SS-4 accepts "Foreign" in the SSN/ITIN field for non-US responsible parties. Many founders waste 2 to 3 months obtaining an ITIN first, believing it is a prerequisite for the EIN. It is not.

Getting an EIN without an SSN or ITIN

Non-US persons can obtain an EIN through three methods:

Method	Timeline	Requirements
Phone (267-941-1099)	Same day	Call during IRS hours (6am to 11pm ET, Mon-Fri), have Form SS-4 completed
Fax (304-707-9471 from outside US)	4 to 7 business days	Fax completed SS-4 to the international fax line
Mail	4 to 6 weeks	Mail SS-4 to IRS, Attn: EIN International Operation, Cincinnati, OH 45999

The phone method is fastest but requires calling during US business hours. Lovie's formation platform handles the EIN application as part of the formation process, obtaining the number within 1 to 3 business days regardless of the founder's location or timezone.

When you actually need an ITIN

An ITIN becomes necessary in these specific scenarios:

1. Your single-member LLC earns US-source income — you must file Form 1040-NR, which requires an ITIN
2. Your bank requires it — some US banks require personal taxpayer ID for account signers (Mercury and Relay typically accept EIN alone; traditional banks often require ITIN)
3. You want to claim tax treaty benefits — Form W-8BEN requires an ITIN to claim reduced withholding rates
4. You sell US real property — FIRPTA withholding and reporting requires an ITIN

ITIN application process (Form W-7)

If you determine you need an ITIN:

1. Complete IRS Form W-7
2. Attach a valid federal tax return (Form 1040-NR) or qualify for an exception
3. Include identity documentation (passport, national ID) — originals or certified copies from the issuing agency
4. Submit to IRS ITIN Unit, Austin, TX 78714-0012
5. Wait 7 to 11 weeks for processing

Important: The IRS does not accept notarized copies of passports. You must either mail your original passport (risky), use a certified copy from the issuing government, or apply in person at an IRS Taxpayer Assistance Center or through a Certifying Acceptance Agent (CAA).

Common mistakes that delay everything

1. Applying for ITIN before forming the LLC — you cannot attach a tax return if you have no entity yet
2. Using the domestic fax number from outside the US — the (855) 215-1627 number only works within the US; international applicants must use 304-707-9471
3. Assuming the EIN phone line accepts ITIN applications — these are completely separate systems
4. Sending notarized passport copies for ITIN — the IRS rejects these; only original or CAA-certified copies are accepted
5. Waiting for ITIN before opening a bank account — many fintech banks accept EIN alone for business accounts

How Lovie streamlines the process

Lovie's non-US resident wizard determines exactly which numbers you need based on your specific situation (entity type, income source, banking requirements). The platform obtains your EIN as part of formation and provides guidance on whether and when to pursue an ITIN, eliminating the guesswork that typically costs founders 2 to 4 months of unnecessary waiting.

FAQ

Can I use my ITIN instead of an EIN for my LLC?

No. An ITIN identifies you personally; an EIN identifies your business. Banks, the IRS, and state agencies require an EIN for business accounts, tax filings, and compliance. An ITIN cannot substitute for an EIN in any business context.

Does my EIN expire if I don't use it?

No. Once issued, an EIN is permanent and never expires, even if the business becomes inactive. However, if you close the LLC, you should notify the IRS to close the EIN account.

Can two people apply for the same LLC's EIN?

No. Only one "responsible party" can be listed on Form SS-4. For multi-member LLCs, designate one member as the responsible party. This person's name (and SSN/ITIN if available) appears on the EIN application.

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External reference: IRS — Apply for an Employer Identification Number (EIN) Online

Form your company with Lovie — $29 one-time + state fees; registered agent $79/year.

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